In our latest two episodes of the Satellite World Briefing, The Future of Inflight Connectivity, Craig Foster and Daniel Welch, Co-Founders and Senior Research Consultants at Valour Consultancy spoke with our host Lucas Hunsicker about the growth of inflight connectivity (IFC), how airlines and business aviation have adopted it, challenges faced of service predictability, hardware interoperability, and the rise in adoption even across low-cost airlines. Read their full conversation below.
Satellite World Briefing (SWB): Can you give our audience a brief overview of your company and what you do?
Craig Foster (CF): Valour Consultancy is a UK-based provider of market intelligence and consulting services. We’ve been in business for about 12 years, focusing on detailed research in both commercial and business aviation. We also work in the maritime sector and, in the future, plan to expand into other forms of transportation. Our goal is to provide comprehensive and trusted research in each of these sectors.
SWB: What trends are you seeing in consumer demand for IFC, and how has this demand evolved recently?
Daniel Welch (DW): IFC has become an expectation for several years now. It’s one of the most important features for commercial carriers, especially full-service ones. The evolution we’ve seen is in what passengers can do with IFC. When it first launched, and even up until the last two or three years, there were expectations of costs and restrictions on what passengers could do. However, those expectations have increased as barriers have come down, and passengers can now access features they’re used to on the ground, often for free. This includes streaming, and this capability will continue to grow and align more with what passengers can do on the ground in the future.
CF: My answer is similar to Daniel’s, focusing on how expectations have changed. In business aviation, the market has democratized in recent years, with significant growth in fractional ownership, jet cards, and on-demand charters, making private aviation more accessible. This has attracted a younger, more tech-savvy demographic, bringing new connectivity expectations. Traditional aircraft owners, like older CEOs, might have made occasional satellite phone calls or sent emails. However, younger passengers have grown up with technology, accustomed to using multiple devices simultaneously and demanding seamless, high-performance connectivity. They expect to second screen, stream 4K content, take conference calls, and, uniquely in business aviation, engage in live gaming. They’re also less tolerant of connectivity issues, as they expect things to work well on the ground. This shift in consumer behavior has driven demand for uncapped data plans and a focus on the overall connectivity experience—not just download speeds, but also factors like latency, which impact Zoom calls, cloud collaboration, and online gaming.
DW: We’ve seen a high focus on service availability in the business aviation space, where there’s zero tolerance for dropouts. Craig has mentioned several instances where this was the case. In the commercial aviation space, there’s been some tolerance for dropouts, especially when services are offered for free. However, that tolerance is diminishing, as passengers now expect consistent service throughout the flight. This evolution reflects the growing maturity of passengers, especially in the commercial sector, where younger demographics are demanding better service. In the future, airlines will have little room to justify dropouts, and this issue will likely fade entirely.
SWB: Are there any regional differences in demand across regions such as Europe, Asia, and America, or is the demand relatively consistent across these areas?
DW: No, I don’t think so. Craig, do you think North America has the highest demand and expectations?
CF: To some extent, North America has been spoiled because it’s had access to air-to-ground connectivity. In business aviation, there are various airframes, unlike commercial aviation with wide-body, narrow-body, and regional jets. North American-based aircraft, including large cabin jets, super mid-sized aircraft, and small cabin jets, have mostly been able to access broadband-like connectivity due to the small nature of air-to-ground hardware. This has set expectations in North America. In contrast, smaller aircraft outside of North America often only have access to L-band, a narrow-band solution, which is reliable but doesn’t meet the need for high-speed, office-like connectivity. Passengers and operators in these regions are now craving better, higher-speed connectivity—something North American users have become accustomed to.
DW: In the Asia-Pac region, there’s an expectation that internet access doesn’t cost much and that for a small fee, passengers can access streaming services, gaming, and other applications everywhere. This creates a shock when passengers board a plane and see how much inflight internet is priced. In this region, there’s an expectation that it shouldn’t cost much—or should even be offered for free. There’s an educational aspect to this, but vendors also need to enable airlines in Asia and globally to offer this service as part of the ticket price. However, most airlines currently can’t justify this. There’s a clear difference in how Wi-Fi costs are viewed in this part of the world compared to others, and we’re not quite there yet.
SWB: How can airlines transform IFC from a cost center into a revenue driver? Given that some airlines offer free Wi-Fi, which has become an expectation for consumers, while others provide premium services like 4K streaming, how can they strike the right balance? Will some airlines opt for free Wi-Fi, while others focus solely on premium offerings?
DW: It’s a silver bullet-style question, and I don’t think there’s a clear answer, which is why many aircraft aren’t yet connected and are still trying to justify the business model. If I look at the world today, many carriers are now finding ways to justify the business case for connectivity, especially in terms of loyalty and competing against other carriers at strategically important ports and domestically. In the US, for some carriers, it’s simply about remaining competitive. For others, they justify it by linking the service to loyalty programs, which is a huge trend. The free service requires passengers to log in with their frequent flyer number or join the program. The benefit is that although acquiring frequent flyers is expensive, the engaged audience on board is willing to sign up for a free service. Once in the frequent flyer program, it typically generates some return. This doesn’t fully cover OPEX or CAPEX, but it’s something that wasn’t there before. Looking forward, the next question is how to convince carriers relying on ancillary revenue to adopt IFC. Progress is being made, and there will be more solutions linking connectivity to retail, onboard advertising, and inflight entertainment, which has transitioned to engagement. While it may not pay off the full service, I think it will help build the business case.
CF: I think the loyalty part is key, and I definitely agree with Dan. The better an IFC system performs, the happier passengers are. Happier passengers lead to a better net promoter score, which results in repeat customers and hopefully increased ticket sales. This is likely why airlines are investing in quality of experience tools to measure the actual onboard experience. These tools help airlines track performance against SLAs, providing insights they didn’t have before, and allow them to ensure passengers are receiving the service they were promised. This is a key part of it too.
DW: Craig, is there the same demand in the business aviation space? I don’t think there is, especially when it comes to justifying the business model.
CF: There is the loyalty aspect to it. In certain models, like fractionals and some charter operators, they’re striving to win business in the same way airlines do. But generally, it goes back to the expectations we discussed earlier. I’ve had conversations where industry professionals told me that aircraft won’t take off if the connectivity system doesn’t work as expected. It’s that simple. There are also cases where, if passengers can’t live game on Xbox, they won’t take off or are very annoyed. This highlights the differences in expectations between the two markets.
SWB: With AIX approaching in April, what are the top three trends you’re most excited about in commercial aviation? What are the top three trends you’re most excited about in business aviation?
DW: It’s been hard to piece this together because I haven’t been to AIX for a while, so I’m genuinely excited about attending the event. I want to see how established vendors have adjusted and are competing against new players entering the market. In the immediate aftermath of these new vendors entering, there was shock at how quickly things shifted with the arrival of LEO and eventually MEO. Now that systems are active and we’re a couple of years in, I’m keen to see how strategic and sales teams are competing and differentiating in this new space. Secondly, we’ve been talking about ESA technology for years, and I’m excited to see how multi-orbit versus LEO develops, not just in antennas but also in cabin components. Lastly, I’m hoping to see an evolution in the line fit space with new products that support the next generation of line fit-ready solutions, which is an area where we’re still catching up.
CF: It’s interesting with Aircraft Interiors because it’s always been associated with commercial aviation, but it’s taken on a bigger role in business aviation over the last few years. You can definitely see more players involved in that market now, which wasn’t the case in the past. For me, the big change is the expansion of the total addressable market for true high-speed connectivity in business aviation. Previously, only large jets could support high-speed satellite connectivity due to the size of mechanically steered antennas required, especially those with T-tails that mount tail-mounted antennas. As I mentioned before, North America has been somewhat spoiled, with smaller jets benefiting from air-to-ground networks, while smaller jets elsewhere were limited to L-band, akin to dial-up internet. But with the arrival of LEO networks and smaller antennas, high-speed connectivity can now be delivered to smaller airframes outside of North America. While Starlink is focused on larger jets, OneWeb’s smaller antenna options are targeting lighter jets for the first time, providing an exciting shift for jets that have traditionally relied on L-band or legacy air-to-ground options.
Growing passenger expectations and technology advancements are driving the ongoing evolution of IFC. Airlines and business aviation operators face unique challenges in delivering seamless, high-speed connectivity, but trends like multi-orbit solutions and loyalty driven businesses models are shaping the future. The ability to provide reliable and high-speed IFC will become a crucial differentiator for carriers worldwide as the industry develops.
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